The yellow precious metal was extremely friendly in this weeks monday trading and climbed to its highest level in over a month.
Because of the 21th Juni 2020, World Health Organization (WHO) reported 183,000 record-high numbers of new infections, risk aversion and thus gold appetite increased noticeably. Rising infection rates are like poison to the economic outlook. Should a second wave of infections paralyze large parts of the global economy again, a lot of money should flow out of stock markets and stimulate the demand for safe havens such as government bonds with excellent credit ratings and gold. The world’s largest gold ETF SPDR Gold Shares also recorded significant capital inflows last Friday. The amount of gold held there has increased from 1,136.22 to 1,159.31 tons the previous day, the highest value since April 2013.
Oil price: curb demand concerns
The WHO report on rising infection numbers slowed the upward pressure on the oil price. However, indications that the supply side is noticeably easing was provided on Friday evening by the weekly report of the US service company Baker Hughes in the oil sector about the North American drilling activities. This showed again that drilling activity had declined again. For example, the number of oil drilling rigs in the USA has dropped from 199 to 189. This is the lowest in about 15 years.